Indian Railways is accelerating its Vande Bharat expansion as rising passenger numbers and stronger financial performance in premium AC categories create a compelling case for modern, higher-value rail services. Nearly 3.98 crore passengers travelled on Vande Bharat trains during FY2025-26, representing a 34% increase over the previous financial year.

The growth suggests passengers are increasingly willing to pay more for faster journeys, improved comfort and modern amenities. With Vande Bharat Sleeper now extending the premium model to overnight travel, the railway network is targeting both high-demand intercity routes and longer-distance journeys.

Most Indian Railways passenger categories continue to operate at a loss, but FY25 financial data shows a major difference in premium AC travel. AC 3-tier generated a profit of Rs 3,645.44 crore, compared with Rs 2,501.07 crore in FY24. AC Chair Car recorded a profit of Rs 376.77 crore in FY25 after posting losses in the previous two financial years.

This profitability matters for the Vande Bharat strategy because Chair Car is a key category on daytime Vande Bharat services, while AC classes are central to the new sleeper model. Although available figures do not provide a standalone profit number specifically for Vande Bharat, the performance of these premium categories strengthens the business case for expanding such services.

Passenger demand has grown alongside the network. Vande Bharat trains carried around 3.98 crore passengers in FY26, up 34% year-on-year. Since the first Vande Bharat Express was introduced in February 2019, more than 9.1 crore passengers had travelled on the network across around one lakh trips by March 2026.

By March 2026, 162 Vande Bharat services were operational across India. The New Delhi-Varanasi corridor, where the first Vande Bharat was introduced, has emerged as the busiest route, carrying more than 73 lakh passengers since launch, according to reported railway data.

The numbers show that Vande Bharat is moving beyond being simply a showcase train and is becoming an important part of Indian Railways’ premium passenger network.

The launch of Vande Bharat Sleeper in January 2026 marked the next stage of the strategy by bringing the premium train concept to long-distance overnight travel. The first service connected Howrah and Guwahati.

During its first three months, Vande Bharat Sleeper carried about 1.21 lakh passengers across 119 trips, with reported occupancy exceeding 100%. Strong initial bookings also showed significant passenger interest in the new service.

The sleeper expansion is particularly important because AC 3-tier, one of the main categories for long-distance premium passengers, has already demonstrated strong profitability within Indian Railways.

Indian Railways must continue serving passengers across multiple income groups, including categories where fares do not fully cover operating costs. Premium services, however, provide an opportunity to attract travellers willing to pay more for speed, comfort and convenience.

Vande Bharat’s rapid ridership growth, profitable premium AC categories and early demand for the sleeper version point toward a broader shift in railway economics. The expansion is therefore not only about adding more modern trains. It is also about building a stronger premium passenger segment that could contribute more revenue while Indian Railways continues modernising one of the world’s largest rail networks.